Former director of the Steinhoff group Stephanus Johannes Grobler, 64 — who is facing charges of racketeering, three counts of fraud worth R21bn, manipulation of financial statements and failure to report fraudulent activities — has been granted bail.

On Monday the Pretoria specialised commercial crimes court granted him R150,000 bail. 

According to the National Prosecuting Authority (NPA), it is alleged between 2014 and 2016 then CEO Markus Johannes Jooste, who is deceased, and Grobler conducted racketeering activities within the Steinhoff group as it was captured by some executive employees.

“During that period it is alleged Jooste played a major role in the management of the criminal enterprise. Furthermore, it is alleged Grobler created documentation of transactions that supported the fraudulent transactions used to inflate and falsify the annual financial statement of the Steinhoff Group,” said NPA spokesperson Lumka Mahanjana.

Steinhoff was a multinational holding company listed in Germany and South Africa and was officially liquidated on October 13 2023. Its holdings were in the retail sector, primarily in furniture and household goods, and included a 43.8% stake in the South Africa Pepkor group.

Asking the court to release him on bail, Grobler said he intends to plead not guilty to the charges and would prove his innocence.

The state opposed his bail application as it said Grobler committed a serious offence which carries a penalty clause of R1bn or a life sentence.

Mahanjana said the prosecutor told the court the accused was a flight risk because he is a “citizen of the world” with business connections all over the globe.

Magistrate Nicca Setshogoe granted him bail with conditions he should report to Brooklyn police station twice a week, on Mondays and Fridays.

“He should hand over his two passports to the investigating officer and he is not allowed to apply for a new one. He should hand over his two firearms to police. He is not allowed to leave Gauteng without informing the investigation officer. He must not interfere with state witnesses,” Mahanjana said.

“The matter was postponed to June 26 for the finalisation of investigations.”

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